Statute · California Business and Professions Code

Cal. Bus. & Prof. Code § 21149 — Franchise Dealers Fair Practices

Cal. Bus. & Prof. Code § 21149

Type
Statute
Source
California Business and Professions Code
Jurisdiction
California
Current through
Nov 2, 2026 (California Legislative Counsel)

Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:

Citator

Cal. Bus. & Prof. Code § 21149 — Franchise Dealers Fair Practices is in force in the current edition of the Code, and nothing recorded condemns it.

Notwithstanding the terms of any franchise, the franchisor may not prohibit or prevent the sale, transfer, or assignment of the franchise to a corporation if both of the following conditions are satisfied:

(a) The franchisee has a controlling interest in the corporation.

(b) The franchisee offers in writing to personally guarantee the corporation’s performance of its obligations under the franchise.